Political Risk - Kompas.id
Legal certainty and policy communication remain challenges for the business world. Businesses struggle to understand the direction of government policies.
14 Sep 2026 19:00 WIB · Surat Pembaca
BPMI Sekretariat Presiden/Rusman
The article “Political Risk, a Specter of the Business World” (Kompas, 10/9/2026) made my heart race. Why not? Our business world faces increasingly strong and widespread political risks.
This issue does not only arise from the government’s direct policies but is also shaped by the increasing uncertainty regarding policy direction, institutional stability, or the power’s response to corporate perceptions.
Bloomberg reported on Tuesday (September 8, 2026) that Indonesia’s richest man has invested US$1.4 billion overseas. This represents a diversification of income sources into other currencies. The overseas investment is part of a broader trend of capital outflows from Indonesia. Investors withdrawing their funds from Indonesia have contributed to the rupiah’s downward pressure, triggering a sell-off in the stock market.
The Indonesian society and government are certainly interested in attracting investments of any kind and from anywhere into the country to build a domestic supply chain, thereby creating numerous job opportunities, adding value, generating a ripple effect in the economy, and contributing to tax revenues for the state.
Legal certainty and policy communication remain challenges for the business world in Indonesia. Some business actors are experiencing difficulties in understanding the direction of government policies.
Rhenald Kasali from FEB UI stated that the government will not be able to drive economic growth if it fails to attract foreign investment while also ensuring that domestic capital remains resilient and expands within the country.
One of the issues that needs to be addressed is the negative perception held by some government elites towards the business world. This affects policy-making, resulting in an increasing gap of trust between the government and the business sector. Additionally, inconsistent communication among ministries further complicates the issues at hand.
Weakened inter-agency checks and balances make policy direction increasingly difficult to predict. This uncertainty has resulted in high business costs, resulting in suboptimal investment. The business sector’s ability to create jobs has also weakened, leading to increased unemployment.
Do not underestimate the ongoing political risks here, as their effects will permeate everywhere, resulting in the increasing vulnerability of the welfare of the Indonesian people.
Kosmantono
Purwokerto
Writer:
KosmantonoEditor:
Johanes Waskita UtamaLanguage Editor:
Amin Iskandar